Real US debt levels could be a shocking 2,000% of GDP, a Wall Street report suggests

CNBC ^ | 09-09-2019 | Jeff Cox

[NRx]

* Total US debt including all forms of government, state, local, financial and entitlement liabilities comes close to 2,000% of GDP, according to AB Bernstein.

* The biggest potential load comes from entitlements, but is being pressured from rising levels of federal government debt as well.

* The warnings about potential debt hazards come as the total federal debt outstanding has surged to $22.5 trillion.

* A debt reform advocate says now is the time for the U.S. to tackle the issue, before recession hits.

Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.

AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions.

Putting all that together paints a daunting picture but one that requires nuance to understand. Paramount is realizing that not all of the debt obligations are set in stone, and it’s important to know where the leeway is, particularly in the government programs that can be changed either by legislation or accounting

[1Old Pro]

Actually it was the first year of his second term, and the Democrats handed his head to him politically. Backed by the voters, almost none of whom wanted to hear reality.

Yep, thus the shift in politics to "forgiving" student loans, paying everyone $1,000 a month, providing free healthcare to all. The fact is everyone would be better served in the future with a public/private social security plan. But people resist change unless it's perceived as a free giveaway.

[Steamburg]

Screw the facts, there’s an election to steal.

[fella]

If our nation was a normal family it would have been in debtors prison since 1935.

[fella]

"Screw our grandchildren, Let’s Party!"

We pasted our grandchildren under LBJ now we're talking about our grandchildren's grandchildren.

[redinIllinois]

Great info

Thanks for posting!!!

[servantboy777]

Crying shame. Older savers have no place to go for decent returns/low risk.

The debt is so large now, raising interest rates stacks tens of billions to the national interest payments.

Just stare at the national debt clock for awhile. Scary sorta debt.

https://www.usdebtclock.org

[SunkenCiv]

from the David Leonhardt keyword:

• Media Decide Deficits Are OK In Obama Era [2009]
• Obama's Budget Plan Sweeps Away Reagan Ideas [2009]
• NYTimes: Obama's Economic Ideas Great... Just Like Hitler's Were? [2009]
• Richly Undeserved [2009]
• New York Slimes: We're Measuring the Economy All Wrong [2018]
• In Health Care Bill, Obama Attacks Wealth Inequality [2010]